As Relative Prices in Various Industries Change Due to

question 30

Multiple Choice

As relative prices in various industries change due to
Trade, the marginal product of fixed resources used in
The expanding industry __________, and the marginal
Product of fixed resources used in the contracting
Industry __________.

• A)rises; falls
• B)remains the same; remains the same
• C)changes by exactly the same percentage; changes by exactly the same percentage
• D)falls; rises

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Definitions:

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